Limited Partner: The Toughest Job You’ll Ever Love?
July 11, 2019 – Partner Brian Gallagher discusses the evolving LP-GP relationship including how LPs are adapting to the rise in sponsors back on the fundraising trail with The Wall Street Journal.
“Access to the best managers is getting increasingly difficult. The industry has only so many elite, outperforming firms. In our experience, accessing an existing fund that will be highly sought after by LPs requires a courting period with the sponsor. That process has to start years in advance of the fundraise.”
When asked what traits LPs need to possess in this market, Mr. Gallagher said, “In this environment, responsiveness and quick decision-making matters. If you want access to the best funds or co-investment opportunities, you need to conduct your initial due diligence quickly.”
Reflecting on recent GP trends, Mr. Gallagher commented, “We find GPs do very few one-on-one meetings with LPs between fundraises. We feel it is important to connect with an LP in their office regularly to build the relationship. Regular one-on-one meetings between fundraises can be very helpful to the GP and LP.”